Comment by gamblor956

Section 174 just brings the treatment of software engineers in line with the way that manufacturing labor is treated in all other industries. If tech hadn't exploited this loophole so hard to invade other industries, the GOP probably wouldn't have tried to close the loophole in 2017.

That being said...the current version of the bill would temporarily pause the current version of section 174 (capitalization of software labor costs). There's no way for them to make the original treatment permanent without adding another trillion or so to the cost of their mega bill.

However, the original reason for that temporary reprieve was that Musk was still Trump's best buddy at the time. Right now, it's the most likely target for getting cut in the reconciliation negotiations between the House and the Senate. Thus, YC reaching out to its readers to support this abomination of legislation.